HSBC appreciates India move to allow more banks to import Gold

 

CHENNAI (Scrap Register): Gold may get a boost from potential relaxation of India’s restrictions on gold imports, said HSBC, citing a recent news report from the Times of India.

 

A news report from Times of India saying the country has increased the number of banks allowed to import bullion. 

 

“This marks a small first step in relaxing its bullion trade restrictions and may be a sign for further easing,” said HSBC via Kitco News. 

 

The move may raise shipments to about 40 metric tons per month from slightly more than 20 in February, the Times of India reported, citing industry officials. This may mean a lower premium.

 

Policymakers also added that further major relaxation of the bullion curbs are likely only after a new government is formed around June, according to the Times of India. 

 

Last year, the country sought to curb imports due to the current-account deficit, with the Reserve Bank of India hiking the duty on raw gold imports to 10% and also announcing an 80-20 rule late that required 20% of imported gold to be set aside for the purpose of exporting in the form of gold jewelry.